Orix Corporation of Japan, owner of 49 per cent stake in the seven operating wind power plants (SPVs) of the IL&FS Group, has expressed its intent to buy out the remaining 51 per cent stake held by IL&FS Wind Energy Ltd.
In April, state-run GAIL (India) had offered to pay Rs 4,800 crore (as enterprise valuation) for the wind power portfolio, subject to Orix agreeing to the sale.
Orix, however, has now decided to buy out the remaining 51 per cent stake by matching GAIL's offer.
"This intent to buy 51 per cent stake is in exercise of Orix's right under the terms of an existing MoU wherein Orix can match the price offered by the highest bidder for purchasing IWEL's stake in the wind SPVs," a statement by the IL&FS Group said on Sunday.
"This development represents completion of a key step in the resolution process for IL&FS Group being undertaken by the new board of IL&FS."
According to the statement, the completion of SPVs sale to Orix will be subjected to compliances and approvals required under applicable laws.
"The sale proceeds, as and when realised by IWEL, shall be held in trust for distribution to the relevant stakeholders in accordance with the proposed Resolution Framework filed with the NCLAT by the Union of India," the statement said.
"Closure of the sale process is expected by the end of June 2019, subject to legal approvals."
Earlier, the new board as part of the overall resolution process for the IL&FS Group has initiated sale of a number of group assets thereby addressing a significant portion of its debt.
"Sale process for assets in the areas of education, funds, domestic roads, thermal power, water infrastructure, technology and key international assets is currently underway and binding financial bids are expected for these companies, businesses in stages by July 2019," the statement added.
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